I currently own two SFR properties because I moved and turned my primary homes into rental properties. I'm currently trying to build my portfolio by starting to find RE "deals." Is it possible to contact home owners who are currently in pre-foreclosure and offer to buy their homes for what they owe on their mortgage? I guess my question is, if the foreclosure sales date is set, is it too late to make these offers?
Thanks in advance!
Working foreclosures is a great business model. Just be sure to learn the laws in your state regarding dealing with people in foreclosure. Some states have very strict laws protecting these people and you don't want run afoul of them.
Also, if they are in foreclosure, you're likely not going to get many deals if you are only offering to pay what they owe. I've done preforeclosure deals for as little as moving expenses and security deposit/first month's rent at a new location. The most I've paid was $25K cash at close and $75K to bring the loan current, but I've not done one for zero. Some rentals I control were preforeclosure deals that I took subject to the defaulted liens and brought them current. Just remember, if they don't have the money to pay their loan, they likely don't have the money to move out so factor that into your offer.
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